What Happens? US Dollar Index Soars Above 100 Trading Levels!

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 The US dollar index, which measures the US dollar against a basket of six major currencies, has climbed to a trading level of 100 for the first time in nearly two years, stimulated by the prospect of more aggressive levels of Federal Rizab tightening to curb soaring inflation.


The US dollar has benefited against a basket of six major currencies over the past month, particularly against the euro. This is because it is driven by doubts about the economic costs of war in Ukraine and the presidential election that has the potential to hurt developments in France.


The dollar index rose as high as 100.19, its highest since May 2020, up 0.2% at 100.01 before dropping to a trading level of 99.850. According to Joe Manimbo, far-right market analyst at Western Union, the strengthening of the US dollar was driven by the rise of price-rising factors consisting of geopolitical risks, uncertainty over the general election in France, and the prospect of an increasingly 'hawkish' Fed profit rate.


The US dollar index has gained 1.5% this week, its biggest weekly gain in a month, supported by a hawkish reality from some of the Fed's base makers.



The Fed's Mac Minutes release this week shows a “plenty” of bottom-line investors willing to raise rates in 50-pound hikes in the coming months.


On the other hand, the euro continued to shrink to a month low of $1.0837. Minutes from the European Central Bank published on Thursday suggested base makers were interested in acting to fight inflation, but the eurozone has so far taken more cautious steps than other central banks, weakening the euro.


That's not all, the increasingly fierce election competition in France between President Emmanuel Macron and far-right candidate Marine Le Pen has added pressure to the euro, raising investors' doubts about the future direction of the eurozone's second-largest economy.


The market is now focusing on more indications from the bottom-dwellers.

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